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Australian (ASX) Banks Industry Analysis
UpdatedJun 01, 2025
DataAggregated Company Financials
Companies14
- 7D1.4%
- 3M7.1%
- 1Y27.3%
- YTD7.1%
Over the last 7 days, the Banks industry has risen 1.4%, driven by gains in Westpac Banking and Commonwealth Bank of Australia of 3.9% and 1.2%, respectively. This takes the industry's 12 month performance to a gain of 27%. As for the next few years, earnings are expected to grow by 2.8% per annum.
Industry Valuation and Performance
Has the Australian Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 02 Jun 2025 | AU$625.8b | AU$94.6b | AU$31.8b | 14.1x | 19.7x | 6.6x |
| Wed, 30 Apr 2025 | AU$599.4b | AU$93.3b | AU$31.7b | 13.4x | 18.9x | 6.4x |
| Fri, 28 Mar 2025 | AU$566.7b | AU$93.3b | AU$31.7b | 12.6x | 17.9x | 6.1x |
| Sun, 23 Feb 2025 | AU$570.2b | AU$93.2b | AU$31.7b | 13.1x | 18x | 6.1x |
| Tue, 21 Jan 2025 | AU$593.2b | AU$92.5b | AU$31.4b | 13.8x | 18.9x | 6.4x |
| Thu, 19 Dec 2024 | AU$601.9b | AU$92.5b | AU$31.4b | 13.7x | 19.1x | 6.5x |
| Sat, 16 Nov 2024 | AU$607.5b | AU$92.5b | AU$31.4b | 13.3x | 19.3x | 6.6x |
| Mon, 14 Oct 2024 | AU$553.9b | AU$91.8b | AU$31.5b | 12.1x | 17.6x | 6x |
| Wed, 11 Sep 2024 | AU$582.1b | AU$91.9b | AU$31.6b | 12.8x | 18.4x | 6.3x |
| Fri, 09 Aug 2024 | AU$519.3b | AU$91.7b | AU$31.6b | 10.9x | 16.4x | 5.7x |
| Sun, 07 Jul 2024 | AU$517.5b | AU$91.7b | AU$31.6b | 10.7x | 16.4x | 5.6x |
| Tue, 04 Jun 2024 | AU$503.1b | AU$91.7b | AU$31.8b | 10.7x | 15.8x | 5.5x |
| Thu, 02 May 2024 | AU$483.5b | AU$92.4b | AU$32.9b | 10.7x | 14.7x | 5.2x |
| Sat, 30 Mar 2024 | AU$502.3b | AU$92.5b | AU$32.7b | 11x | 15.3x | 5.4x |
| Mon, 26 Feb 2024 | AU$487.3b | AU$92.5b | AU$32.7b | 10.5x | 14.9x | 5.3x |
| Wed, 24 Jan 2024 | AU$469.6b | AU$92.8b | AU$33.2b | 8.2x | 14.1x | 5.1x |
| Fri, 22 Dec 2023 | AU$451.1b | AU$92.8b | AU$33.2b | 8x | 13.6x | 4.9x |
| Sun, 19 Nov 2023 | AU$416.8b | AU$92.8b | AU$33.2b | 7.9x | 12.6x | 4.5x |
| Tue, 17 Oct 2023 | AU$425.9b | AU$91.0b | AU$32.5b | 8x | 13.1x | 4.7x |
| Thu, 14 Sep 2023 | AU$425.6b | AU$91.0b | AU$32.6b | 8.1x | 13.1x | 4.7x |
| Sat, 12 Aug 2023 | AU$432.0b | AU$90.8b | AU$32.5b | 8.5x | 13.3x | 4.8x |
| Mon, 10 Jul 2023 | AU$401.5b | AU$91.0b | AU$32.4b | 8.3x | 12.4x | 4.4x |
| Wed, 07 Jun 2023 | AU$395.2b | AU$91.0b | AU$32.4b | 8.2x | 12.2x | 4.3x |
| Fri, 05 May 2023 | AU$402.8b | AU$90.3b | AU$31.7b | 8.2x | 12.7x | 4.5x |
| Sun, 02 Apr 2023 | AU$410.9b | AU$89.2b | AU$31.5b | 9.7x | 13.1x | 4.6x |
| Tue, 28 Feb 2023 | AU$433.4b | AU$88.9b | AU$31.4b | 10.9x | 13.8x | 4.9x |
| Thu, 26 Jan 2023 | AU$451.6b | AU$87.5b | AU$30.9b | 10.5x | 14.6x | 5.2x |
| Sat, 24 Dec 2022 | AU$440.1b | AU$87.6b | AU$30.9b | 10.3x | 14.2x | 5x |
| Mon, 21 Nov 2022 | AU$444.7b | AU$87.6b | AU$30.9b | 11.1x | 14.4x | 5.1x |
| Wed, 19 Oct 2022 | AU$441.6b | AU$87.8b | AU$29.9b | 11.3x | 14.8x | 5x |
| Fri, 16 Sep 2022 | AU$414.8b | AU$87.6b | AU$29.9b | 11.1x | 13.9x | 4.7x |
| Sun, 14 Aug 2022 | AU$432.0b | AU$87.5b | AU$30.0b | 12.3x | 14.4x | 4.9x |
| Tue, 12 Jul 2022 | AU$392.5b | AU$87.3b | AU$30.2b | 12x | 13x | 4.5x |
| Thu, 09 Jun 2022 | AU$435.3b | AU$87.2b | AU$30.2b | 12.5x | 14.4x | 5x |
Price to Earnings Ratio
14.4x
Current Industry PE
- Investors are optimistic on the Australian Banks industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 19.7x which is higher than its 3-year average PE of 15.2x.
- The 3-year average PS ratio of 5.3x is lower than the industry's current PS ratio of 6.6x.
Past Earnings Growth
- The earnings for companies in the Banks industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 2.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Financials industry?
| AU Market | 0.92% | |
| Financials | 1.34% | |
| Banks | 1.40% | |
| Diversified Banks | 1.41% | |
| Regional Banks | 0.99% | |
Industry PE
- Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 15.3x.
- Analysts are expecting annual earnings growth of 2.7%, which is higher than its past year's earnings decline of 1.1% per year.
- Investors are most pessimistic about the Regional Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.8x.
Forecasted Growth
- Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 6.8% over the next 5 years.
- This is better than its past earnings decline of 7.8% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 2.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| WBC Westpac Banking | AU$32.56 | 3.9% +AU$4.2b | 25.3% | PB1.5x | |
| CBA Commonwealth Bank of Australia | AU$175.95 | 1.2% +AU$3.5b | 47.2% | PB3.9x | |
| NAB National Australia Bank | AU$38.00 | 0.8% +AU$916.5m | 12.1% | PB1.9x | |
| BEN Bendigo and Adelaide Bank | AU$11.98 | 1.0% +AU$67.9m | 9.6% | PB1x | |
| BOQ Bank of Queensland | AU$7.81 | 1.2% +AU$59.2m | 35.8% | PB0.8x |